Foreigners are buying up housing in Spain in 2023

December 27, 2023

A real volcano is bubbling in the depths of the Spanish real estate market, and foreigners are becoming its main participants. Since the beginning of 2023, they have been actively purchasing housing in Spain, creating records and causing a real stir.

In the first six months of this year, foreigners have made an astronomical number of transactions - 67,983 properties on Spanish soil. This indicator goes beyond the usual statistical data, emphasizing the incredible activity in the market.

Interestingly, this period was marked not only by massive transactions, but also by records. Foreigners accounted for 21.4% of the total purchases in Spain during the period under review. This is the highest indicator since the beginning of systematic market surveillance.

If we take a closer look at the dynamics, an interesting fact comes to light: more than half of the transactions are made by resident foreigners. Nevertheless, we are seeing a definite decrease in this indicator - 3.4% year-on-year. Non-residents also experience a more significant decline, reaching 12.4%.

It is important to note that the regions with the coast turned out to be the most attractive for foreigners. The Valencian community has reached an absolute maximum in this regard, having sold 20,933 housing units. It is followed by Andalusia (12,656), Catalonia (10,350), the Canary Islands (5,640) and Madrid (4,651).

But interestingly, in addition to the volume of transactions, the change in price dynamics attracts attention. Transactions made by foreign buyers in the first half of 2023 are concluded on average at the level of €2,095 per square meter. This represents an increase of 1.3% compared to the same period last year and is the highest since the end of 2008, exceeding the average prices paid by citizens (€1,574 per square meter).

Another interesting dynamic is the price difference between resident and non-resident foreigners. The former paid a higher amount for their homes (€2,598 per square meter), ahead of non-resident foreigners (€1,676) and citizens of the country (€1,574). It is worth noting here that prices for residents increased by 2.9%, ahead of non-residents (+2.8%) and citizens of the country (+0.7%).

According to national statistics, the highest prices per square meter were provided by buyers from Sweden (€3,036) and Denmark (€2,930). Their amounts have reached a historic high, followed by buyers from the USA (€2,921), Switzerland (€2,812), Germany (€2,724) and Norway (€2,584). Buyers from Russia (€2,293), France (€2,260), Italy (€2,219), the Netherlands (€2,195), Belgium (€2,180) and Ireland (€2,125) also stand out above the national average.

But the nationalities with lower prices per square meter turned out to be Moroccans (€689), Romanians (€1,086) and Ecuadorians (€1,335).

If we talk about citizens of other countries, in the first six months of 2023, foreigners from the UK (9.6% of the total number of transactions), Germans (8.1%) and Moroccans (7.3%) purchased the most houses. This corresponds to 6,498, 5,519 and 4,931 units, respectively, ahead of the French (4,926) and Romanians (4,336).

However, it is worth noting that some countries experienced a decrease in activity compared to the previous year. Sales to German citizens decreased by 26.8%, the UK by 17.1%, Romania by 13.8%, France by 13% and Morocco by 8.9%. While Russians (+50.2%), Ukrainians (+41.6%), Americans (+13.6%), Chinese (+11.8%) and other citizens of non-EU countries (+8%) showed positive dynamics.

In addition to purchases, there has been an increased interest in renting housing from abroad. At the end of the second quarter of 2023, an increase in the number of visits to rental properties on the Idealista portal was recorded by 85% compared to the same period in 2019.

Foreigners are interested not only in buying housing in large cities, but also in renting in small towns. The Balearic Islands (26%), Alicante (25.2%), Malaga (22.8%) and Santa Cruz de Tenerife (21.4%) are becoming the most attractive regions for finding a rental apartment, ahead of Valencia (17.3%), Barcelona (17.2%) or Las Palmas (16.9%). Girona (14.5%) and Almeria (14.3%) are also above the national average.

Thus, the year 2023 turns out to be very promising for foreigners who want to buy or rent housing in Spain. To sum up, despite the uncertainty and economic fluctuations, Spanish real estate continues to attract the attention of foreign investors, creating unique success stories.